In this article it is a question of price marketing policy which is indisputable, is the most terrible weapon in competitive fight, but the mistakes allowed in its planning (both overestimate, and price understating), lead to considerable short-reception of profit. Each farmer, establishing the price for the production and planning price marketing policy of the economy for prospect, should consider, first of all, a number of the factors influencing process of pricing. Distinguish internal and external factors. It is in detail told about them in the publication.
Practical marketing – to the farmer
Practical marketing – to the farmer
The price marketing policy, undoubtedly, is the most terrible weapon in competitive fight, but the mistakes allowed in its planning (both overestimate, and price understating), lead to considerable short-reception of profit. Each farmer, establishing the price for the production and planning price marketing policy of the economy for prospect, should consider, first of all, a number of the factors influencing process of pricing. Distinguish internal and external factors. Let’s tell about them in more detail.
Internal factors
1. A factor of expenses, certainly, the main in the course of pricing. Than expenses of a farmer hozyayyostvo (are lower further – FH) on production of a unit of production, subjects it is more competitive. A typical mistake of domestic agricultural enterprises yavlyaetsya reduction of the general expenses with a view of prime cost reduction. As result – considerable decrease in indicators of productivity, that is productivity of agricultural cultures, a gain of animals, etc. In this case prime cost not only doesn’t decrease, but sometimes even grows. It is possible to call striking examples of such mistake widespread cultivation of agricultural cultures at the expense of natural fertility of the soil, without application of mineral and organic fertilizers, and also economy on means of chemical protection of plants.
2. Pricing purposes. All process of a tsenoobrayozovaniye first of all depends on what purposes puts before itself FH. Let’s consider main of them.
Need of increase in a share of the market
Producers who meaningly underestimate the price for own production for increase in number of the regular customers at the expense of a peremanivaniye them at competitors want to reach usually similar purpose. Such steps directed on increase in profits in the future, only the strong hozyayyostvo and only if it won’t provoke price war between it and his competitors presumes to itself.
Maximizing the current profit
Exists in two forms:
• conscious overestimate of the price – in a case, kogda demand is high, and the competition is absent. In this form that FH during certain time can receive the superincome is positive. But it is not necessary to forget and about danger – the similar type of pricing will involve on this market a significant amount new and, probably, more financially powerful competitors that will seriously complicate economy existence in the future;
• essential economy on expenses with snizheyoniy qualities, but without decrease in the realizatsionny price. This form use very often. The weak enterprises which work in the conditions of the high competition resort to it as strong producers in the markets where the competition is insignificant, and and everyones by hook or by crook pytayutsya to get profit.
From the point of view of marketing, in both cases such actions of FH though are possible at certain obyostoyatelstvo, but don’t consider prospect, are dangerous and can be only temporary because of a high veroyatyonost of complete loss of the kliyenturny market.
Leadership gain on quality
Such purpose is put usually before themselves by the strong hozyayyostvo which high-quality production has a stable demand. In the specified conditions the high price defrays high expenses on production and acts as obligatory its quality indicator.
Providing survival of an economy
Certainly, there are situations when a survival vazhyony arrived. Then FH is compelled to realize the production with a minimum level of profitability or even below cost. It can happen and because of essential miscalculations in business, and in case of need in current assets. Certainly, it is only temporary purpose.
External factors of influence
1. Demand factor. The law of demand testifies that traditionally consumers buy more goods on low, rather than at the high price. Sensitivity of buyers to changes in the prices is defined by tseyonovy elasticity of demand. So, on certain types of agricultural products demand is elastic, even neyoznachitelny reduction of price leads to large-scale increase in demand, and, on the contrary, its insignificant poyovysheniye can stop completely sale (dairy, meat products). However in the course of pricing it is necessary to take into consideration that on some goods, for example, necessities (bread, drugs), demand isn’t elastic and change of the price can’t cause essential changes of sales volumes.
2. Market type. Developing price policy, FH should consider that in modern domestic agro-industrial complex depending on type of production various types of the market operate, each of which is characterized by the mechanism of a tsenoyoobrazovaniye. Let’s consider the main.
• The market of the pure competition – the market of the homogeneous goods (grain, a sakharosyrye). On any certain buyer or the seller is mute has no reyoshayushchy influence on the price. The unique weapon in competitive fight in this market is the soyokrashcheniye of expenses on production of a unit of production with a view of receiving bigger profit. For this reason this market suits large agricultural enterprises more. For underdeveloped FH which because of small volume of production can’t provide essential decrease in prime cost and receiving arrived, necessary for a survival, this type of the market is dangerous.
• The market of the monopolistically competition – the market of the diverse goods on which each tovaroproyoizvoditel, giving to the goods certain competitive advantages (high quality, uniqueness), can conduct own active price policy. It is more suitable for small FH. An example – the cultivation focused on the regional market high-quality landing materiala fruit and berry cultures and its realization to the population.
3. The point of view of the buyer – the exact accounting of an assessment the buyer of the benefits received upon purchase of the goods, and a prediction of the price corresponding to such assessment. This factor presumes to establish to the businessman the high prices for the production or services, under condition of confidence that in the market there are consumers, concordants them to pay. An example – the organization near big cities of elite fishing on the large fish started in a private reservoir.
4. Competition factor. If production of FH is similar to the goods of the main competitor, it will be compelled to establish the price close to the price of his goods. If quality of the goods is higher or it has positive differences, the price can be higher and on the contrary. FH should work constantly in the direction of creation of new competitive advantages of sobstvenyony production. An example – container or packing improvement, preselling processing of a sowing material by growth factors.
5. Factor of the accounting of interests of participants of channels sbyta. Realization of the majority of types of agricultural products demands existence of a chain of intermediaries and an obligatory poyolucheniye them a certain rate of return, sometimes even more than from FH. This objectively correct decision as it is much more favorable to small economy to invest in the production than to spray efforts, creating own sales channels. The exception is made by work in a market niche, that is production of unique production and the organization of own sales channels with a view of receiving additional profit. An example – cultivation and realization of high-thoroughbred young growth of selskoyokhozyaystvenny animals.
Summary
Summing up stated, we come to the following conclusions:
• Underestimation of each of the factors influencing process of pricing, can cause considerable short-reception of profit.
• Reduction of expenses on production not always leads to reduction of product cost.
• The essential economy on expenses with decrease in quality in the long term can lead to complete loss of the kliyenturny market.
• With a view of maintaining active price policy of FH should choose that type of the market on which it can create and offer consumers opredeyolenny competitive advantages of own production.
(On newspaper materials Balance Agro).